Alamos Gold Sells Quartz Mountain Gold Project to Q-Gold Resources
Toronto, April 3, 2025 – Alamos Gold Inc. (TSX:AGI, NYSE:AGI) (“Alamos” or the “Company”), a leading intermediate gold producer, announced today that it has reached a binding agreement to sell its non-core Quartz Mountain Gold Project (“Quartz Mountain”) located in Lake County, Oregon to Q-Gold Resources Ltd. The sale is expected to bring Alamos approximately $120 million in cash.
Background on Alamos Gold and Quartz Mountain
Alamos Gold is a Canadian-based mining company with a diverse portfolio of gold and base metal projects. Quartz Mountain, which was acquired by Alamos in 2013 for around $100 million, is a past-producing gold project with measured and indicated resources of approximately 600,000 ounces of gold. Despite its potential, Quartz Mountain was considered a non-core asset due to its high-cost operation and proximity to other Alamos projects.
Financial Implications for Alamos
The sale of Quartz Mountain will provide Alamos with a significant cash infusion, which the company intends to use to reduce debt and strengthen its balance sheet. Alamos currently has a net debt position of around $1.2 billion and has been actively working to deleverage its balance sheet. With this sale, Alamos is expected to reduce its net debt by approximately 10%.
Impact on Q-Gold Resources
For Q-Gold Resources, the acquisition of Quartz Mountain represents a strategic opportunity to expand its gold production profile. Q-Gold Resources is a junior mining company with a focus on exploring and developing gold projects in North America. The acquisition of Quartz Mountain will not only increase its gold reserves but also provide the company with an operating mine and experienced personnel.
Global Impact
The sale of Quartz Mountain to Q-Gold Resources is not expected to have a significant impact on the global gold market. However, it may signal a trend of mining companies divesting non-core assets to focus on more profitable projects and reduce debt.
Conclusion
Alamos Gold’s decision to sell its non-core Quartz Mountain Gold Project to Q-Gold Resources for approximately $120 million represents a strategic move for both companies. Alamos will use the proceeds from the sale to reduce its net debt, while Q-Gold Resources will gain a strategic asset to expand its gold production profile. The sale may also be a sign of a trend in the mining industry, with companies focusing on core assets and deleveraging their balance sheets.
- Alamos Gold sells Quartz Mountain Gold Project to Q-Gold Resources for $120 million
- Proceeds to be used by Alamos to reduce net debt
- Q-Gold Resources gains strategic asset and experienced personnel
- Possible trend of mining companies focusing on core assets and deleveraging
